In a stunning comeback, privacy-focused cryptocurrency Zcash has skyrocketed over 33% in a single day, reaching a peak of nearly $735 and triggering a massive $51 million in short liquidations. This surge, part of a tenfold price increase in just five weeks, comes amid escalating concerns over Bitcoin’s privacy and centralization. As the crypto world watches, Zcash’s rally may have been supercharged by a recent harsh court ruling against a Bitcoin privacy developer.
Zcash, long overshadowed in the crypto market, exploded on Friday with a 33% jump from $536 to almost $735 before settling at $666—still up 25% in 24 hours. This rapid ascent liquidated over $59 million in positions, ranking Zcash third in crypto liquidations behind giants Bitcoin ($150 million) and Ethereum ($146 million), according to CoinGlass data. What was once a $40 token languishing for years is now valued at an $11 billion market cap, its highest price since January 2018, though still 79% below its 2016 all-time high of $3,191.
What’s Fueling the Fire?
Analysts point to growing unease in the Bitcoin ecosystem as a key driver. With Bitcoin facing increased corporate and political influence, fears of compromised privacy and decentralization have pushed investors toward alternatives like Zcash. Forked from Bitcoin’s codebase in 2016, Zcash uses advanced zero-knowledge proofs to enable truly anonymous transactions, making it the largest privacy coin by market cap.
The timing of Zcash’s latest pump aligns suspiciously with a major legal blow to crypto privacy. On Thursday, Keonne Rodriguez, developer of the Bitcoin privacy app Samourai Wallet, received a maximum five-year prison sentence for operating an unlicensed money transmitter. The ruling, pushed by President Trump’s Department of Justice despite promises to protect developers, drew sharp criticism from privacy advocates and may have amplified demand for robust privacy solutions like Zcash.
This isn’t just a flash in the pan—Zcash’s month-long streak reflects broader shifts in the crypto landscape. As Bitcoin’s dominance wanes under scrutiny, privacy coins are stepping into the spotlight, offering users a shield against surveillance in an increasingly regulated world.